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Cyril E. Mendelson, 78, a retired physician who was a founder of the Michael Reese Health Plan, died Friday in Evanston Hospital. The Michael Reese Health Plan later became the Humana Health Plan. Mr. Mendelson, a Lincolnwood resident and Chicago native, attended Crane Technical High School, the University of Illinois at Champaign-Urbana and later the University of Illinois-Chicago, where he received a medical degree. He trained at Michael Reese Hospital and practiced internal medicine there for more than four decades and later at Evanston Hospital. He is survived by his wife, Sandra; a daughter, Marla; a son, Ed ; a sister, Lillian Klein; and a brother, Marvin. Burial was Monday in Westlawn Cemetery in Norridge.